San Gold Drills 1787 g/tonne Gold Over 2.1 Meters at New "007" Discovery

BISSETT, MB--(Marketwire - November 23, 2009) -to the solid and unique geological thinking that our
Dale Ginn, CEO of San Gold Corporationexploration team has undertaken as well as a credit
(TSX-V: SGR), is pleased to report that a new highto the time tested success that drilling near past and
grade gold occurrence christened the 007 Zone hasproducing mines brings."
been discovered by surface diamond drilling and isAssays are pending from intersections of the same
located approximately 600 meters to the southeastzone in four holes: CD-09-002, 003, 004 and 005. Hole
of the Hinge Mine. Drill hole #CD-09-007 encountered#006 has not yet been logged while hole #008 was
1787.7 g/tonne (52.20 oz/ton) over 2.1 meters (6.9shut down early due to hole deviation from the
ft) at 200 meters (660 feet) below surface in aintended target. This zone remains open along strike
continuous quartz-carbonate vein containing abundantto the north-east and to the south-west as well as
visible gold throughout. Results from this hole areat depth and to surface. The 007 zone dips steeply
summarized below but due to the extremely highto the north-northwest and is made up of quartz and
grade nature of this intersection, an accompanyingcarbonate veins containing gold and pyrite
table is also provided in order to present eachmineralization. The dominant deposit control appears
individual assay interval within the geologically definedto be structural as with the previous three deposits
mineralized boundaries. The first hole drilled in this(Hinge, Cohiba and L13); however the lithology is
area -- CD-09-001 is also reported below and isslightly different in that this deposit occurs at or near
located above and to the east of hole #CD-09-007.an intermediate-mafic contact. Strong chloritic
The locations of the above intersections and of thealteration of the mafic unit is observed at the
remaining holes with pending assay data are displayedfootwall contact immediately below the mineralized
in the longitudinal section provided within the graphicalveining, the strike length of this contact is currently
version of this press release.unknown. A second diamond drill has been moved
Hole # From To Length Gold g/tonne Zone (oz/ton)from the Cohiba area in order to assist in grid drilling
--------- ------- ------- ------------- -------------- -----this zone. The 007 zone is located approximately 2
CD-09-007 290.3 m 292.4 m 2.1 m (6.9 ft) 1787.7kms to the north-east of San Gold's operating Rice
(52.20) 007 CD-09-001 294.0 m 295.6 m 1.6 m (5.3 ft)Lake mine and mill, is fully accessible by road and is
2.4 (0.07) 007 Distribution of grade within CD-09-007:potentially accessible from the Hinge Mine decline.
From To Length Gold g/tonne (oz/ton) Rock TypePlease see the San Gold website ( for photos of this
Assay -------- -------- ------ -----------------------high grade intersection, location maps, cross and
---------------- 290.30 m 290.84 m 0.54 m 0.3 (0.01) Qtzlongitudinal sections.
Vein, Py 290.84 m 291.36 m 0.52 m 1691.4 (49.39)This program was carried out under the supervision
Qtz Vein, Py, VG 291.36 m 291.79 m 0.43 m 6465.4of W.S. Ferreira, P.Geo., the Qualified Person for this
(188.79) Qtz Vein, Py, VG 291.79 m 292.40 m 0.61 mproject under National Instrument 43-101. The drill
200.7 (5.86) Qtz Vein, Py, VGcore was split, with half sent to TSL Laboratories in
Dale Ginn, CEO of San Gold stated: "Our explorationSaskatoon, SK and fire assayed with an AA and
team led by Bill Ferreira has made its fourth highgravimetric finish. Whole metallic assays were
grade discovery near surface in close proximity toperformed on samples containing visible gold. Check
our mill in the past 18 months and its third discoveryassays were also performed on pulps and rejects by
this year. Hole #007 is the highest grade intersectionboth TSL and by Accurassay Laboratories of
that I can recall in the Rice Lake Belt, rivaling the bestThunder Bay, ON. The core lengths are actual lengths
holes ever drilled in the neighboring Red Lake campas drilled and have not been adjusted for the true
and certainly eclipses anything we have drilled to datewidth of the mineralized zones.
in the Hinge zone. This discovery is again testimony